Hundreds of layoffs are following in the wake of the T-Mobile/Sprint deal

by Steve Blum • , , , ,

Sprint booth mwc la 2019 22oct2019

T-Mobile is laying off hundreds of former Sprint employees as it consolidates the operations of the two mobile carriers that merged in April. A story by Zack Whittaker and Brian Heater at Tech Crunch broke the news about Sprint employees on Tuesday…

In a conference call on Monday lasting under six minutes, T-Mobile vice president James Kirby told hundreds of Sprint employees that their services were no longer needed. He declined to answer his employees’ questions, citing the “personal” nature of employee feedback, and ended the call.

T-Mobile responded with a press release in which it claimed it would “add 5,000 new positions over the next year”, but for now it wanted to “focus” its resources…

This will result in additional career opportunities for many, as the company positions itself for long-term healthy growth. As part of this process, some employees who hold similar positions are being asked to consider a career change inside the company, and others will be supported in their efforts to find a new position outside the company.

Translation: yeah, we’re firing them.

These involuntary “career changes” should come as no surprise. During the California Public Utilities Commission’s review of the merger, T-Mobile promised on the one hand to keep its combined California workforce at the same level for the next three years, while on the other hand agreeing to open a new call center in Fresno County that would employ 1,000 people. Do the math.

The CPUC did the math, and required T-Mobile to make those 1,000 call center jobs a net addition to the combined T-Mobile/Sprint headcount as of the merger date. Whether or not that order has any teeth is unknown. T-Mobile has consistently maintained that the commission has no authority over its wireless business, and matched those words with deeds.

Even bigger job cuts are coming at AT&T. It’s primary union, the Communications Workers of America, says 3,400 AT&T employees are about to be out of work, and hundreds of wireless stores will close, according to a story in FierceWireless by Bevin Fletcher.